The new LTE iPhone would be backwards compatible with CDMA, which runs about 10 times slower than LTE, the source told MacDailyNews. Part of the reason for that is because LTE access won't be nationwide on Verizon until at least late 2011. Verizon launched LTE in 38 U.S. markets on Dec. 5 , with access only on USB modems used with laptops.

According to the anonymous source, the new iPhone on LTE would be exclusive to Verizon, and would be marketed as such. The source said the device shown at a training session is "100% cooked" and already shipping in bulk to Verizon warehouses.

Industry observers, however, said putting an LTE-only version on sale would make little sense given the iPhone's current success on AT&T and elsewhere with slower network speeds.

Verizon would not comment on the report or its plans for LTE smartphones beyond reiterating what officials have said before -- that an LTE smartphone should appear by late February or so.